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SAVE Subsidy Calculator

Enrolling in the new SAVE plan can mean extra help from the government on your student loan interest.

Written By: Michael P. Lux, Esq.


Affiliate Disclosure and Integrity Pledge

In addition to calculating your monthly subsidy on SAVE, this calculator will help you estimate monthly payments on the SAVE repayment plan.

Because the SAVE calculation will change on July 1, 2024, to charge borrowers less for undergraduate loans, it is necessary to separate undergraduate debt from graduate debt. If you have a consolidated loan, please do your best to estimate which portion of the debt is graduate and which portion is undergraduate.

Subsidy Calculator

SAVE Subsidy Calculator

Undergraduate Loans

You can add all your individual loans for the most accurate calculation or enter an estimated total balance for faster analysis.

Graduate Loans

If you don’t have any graduate loans, please enter 0.
Note: Use Adjusted Gross Income (AGI) for best results.

What is the Purpose of the SAVE Subsidy?

Historically, many borrowers qualified for IDR plans with monthly payments lower than the monthly interest charges on the borrower’s loans.

When this happened, IDR enrollment could mean that the balance grew considerably.

This made it harder for IDR borrowers to repay their debt, and it created the possibility of a larger tax bill if the debt was forgiven.

With the SAVE subsidy, borrowers don’t have to worry about their balances increasing.

How is the SAVE Subsidy Calculated?

This calculator works by first calculating an estimated SAVE payment and then comparing it to the expected monthly interest charges for the loans.

To understand the basics of the SAVE subsidy, check out this article that explains how it works.

Maximizing the Benefit

If you qualify for the subsidy, the Department of Education suggests making extra payments to attack the principal balance. I think many borrowers would be better off using a different strategy.

Additionally, borrowers who find ways to shelter income from IDR payments can increase their subsidy even further. My favorite strategy is to set money aside in a retirement account.

About the Author

Student loan expert Michael Lux is a licensed attorney and the founder of The Student Loan Sherpa. He has helped borrowers navigate life with student debt since 2013.

Insight from Michael has been featured in US News & World Report, Forbes, The Wall Street Journal, and numerous other online and print publications.

Michael is available for speaking engagements and to respond to press inquiries.

11 thoughts on “SAVE Subsidy Calculator”

  1. Do you generally recommend those with high balances file taxes separately if married for the loan repay benefits? We have been filing jointly but at the single rate. Thank you.

  2. When I go to Consolidate my loans and choose the SAVE option instead of IBR, it shows the 20 years starting from today instead of 2011 when my loans went into repayment. Is that correct? Will all of my payment years be negated?

  3. One more question– once I am on SAVE, my balance won’t grow any more? It started at $118,000 and is now at $180,000. I want to be clear to best save for that TAX bomb?

  4. Wow Mike! This is extremely helpful. Right now I have a balance of $180,000 with 7.65% interest. My AGI is about $86,000. Right now I pay $440 on PAYE. When I called to look into SAVE they asked for both me and my husbands income- and said my payments would increase to $720. This year we plan to file separately.

    Is there anyway I can get this lower payment BEFORE July 1,2024?


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